George Stahl talks with Jonathan Cheng on short-sellers finding friends in banks underwriting IPOs, and Steven Russolillo looks at why Mark Cuban hates what Facebook did to IPOs.

This transcript has been automatically generated and may not be 100% accurate.

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I ... they're serving up more headaches for TV broadcasters market unlike Facebook but not necessarily tech IPO's ... and searching for on Facebook and ten footer made easier by a kid ... all that Anwar did despite Amish are still sitting in for Simon Constable was starting his dwelled a BBQ early ... and I'm here with ... that the Jag ... who is here to talk about our first story today on Facebook in yet another controversy regarding its IPO ... the latest theme some difficulties said investors had been trying to profit from this stock to climb ... to happen right well you know is almost exactly a week now Facebook went public ... lot of people look at the IPO of ... the look of the first day performance and ... needless to say let's look at all the grade of the gate ... aam then the next few days we saw the Stop Online two percent ... while people saying that that stock and bond as hard as it did with awesome people short selling ... the question being can use or sell a stock that early on ... where the rules regarding short seller not the ... fault that it's it's complicated or so ... but still coming at the bottom that we've spoken a lot of people ... and you have a lot of people on both sides of this thing Sunday people was St ... there's no way you can short ... piano in IPO ... it properly in the first three days of this is actually the differ ways to do it ... um it seems like a balanced is is is is in favor of craps with people say you know ... there some wiggle room in certain circumstances and ... indeed that the really what hinges on whether or not you're able to get ... shares because even if you ... don't cotton allocation of a stock you don't actually technically get it for three days ... because of some technical rules written you need to own the stock if we can ensure that site if you don't know actually on the stock it's called make the top selling that's ... that's that's an ally Cuba right ... and so what that means is for those for three days nobody actually has in the shares which means that there are no underlying shares the backs the courts ... but even if there is legal issues were either losses on ethical issues because the banks are involved with trying to sell the IPO to promote the IPO are also the ones that are needed to help shorted so it seems like they're on both ends of the current day right so the people who do have the shares in those meetings are ... the underwriters the investment banks that are a lot of investments in the steel ... they're actually holding the shares and ... up are reporting shows that ... these banks from lending of the shares to their clients ... who could then use that as ... of the underlying share ... the located in Grand lingo in order to short ... the stock so ... you know on one side to selling it there there on the road show the drumming up support for the stock on the other side ... um they're also landing on the shares for ... fourth-quarter purposes ... any sense now there were weak into just what percentage of the shares outstanding regarding Facebook are being shorted ... well in the early days the festival they be sought as high as thirty percent or so and the shares traded ... that's right none of the shares and are outstanding right that's right now the shares outstanding of lot of it is to be locked out of you know not all that underwent a tenant typically ... when IPO watches it takes several days for ... the inventory of all commendable Global shares to get up to a level where people can effectively do it so ... the first few days of you wanted to get your hands on one of these shares in order to shore ... it was really small hole you have a pretty good connections and wanted to do it is not something that ... I knew I could've done that this is something that you care ... and if you're making the bed and ... and and profiting from Facebook and down you might be making money today as the stock is down three point five percent that's right but it is this something that is common to IPO's in general overseas is getting more attention just like everything because its face ... well certainly ... the reason already battered and the reason why we pay so much and that is because of Facebook and because of problems around the ... bellwether not this happens every IPO or not ... frankly this about you know something that that that we begin to be granted and you know for the most part ... IPO's tended ... to get a nice pop of the first and so people are looking to shorted heavily as they are in this case but ... you know this is what we found them to ... clearly it adds another question real quickly any government any government agencies remote regions has looked into this ... you know aam ... no evidence of that yet I mean look it's it's not clear necessarily from from what we've discovered that the only thing ... for say that that that actually brought him but ... again I'm not around regulatory experts L Anderson as well he'll be here until the body that was not slow down to ... the study began ... if you think that is all that we have to say the Facebook timidity on the Digits ... delay there there's other news coming from Mark Cuban who is saying that he gives a thumbs up to Facebook but a thumbs down to tech IPO's in your talk about his Steber slow Steve a Dominice threatening to mom so much even which is a factor for second with a bigger beneficiaries of the web bubble was in the kiddie KO got out the rate I mean a lot of money has leverage that position into owning the Mavericks ... into becoming a TV star is of little piece of ... you cannot some comments regarding Facebook in the IPO with the SEC ... exactly so he had up to put out on a lot of heat is too busy talking about how ... this IPO has been so detrimental to investor psyche and how it says that really ... really just a very very negative impacts ... we should say also that the very end of this plot close to disclose that he bought her to come here in SF so if if that's the one B cap get him in a money polite and Daniel Loeb exactly what it was that seems like he's he's doing pretty well right now but I ... it's it's interesting though because he is the point that he make are some pretty substantial points in the sense that ... you know people lost a lot of money inside don't even know there was that was trading glitches don't miss them man could've gone wrong went wrong and so ... he's highlighting some points that ... you know that they use ... the system is already weighed on people have been burned so badly over the last decade whether it be that that the tech boom and bust or whether it be that the financial crisis into thousandeight ... and so this is just another example of how a lot of people think that the insiders the professional investors are are gaming the system ... and just the average lately guy on the Street ... there's no way that they can make money from this and that the stock market is turned into huge casino and so it goes to the point that he's he's making NAR substantial points the menu ... is quite easy to do the puzzle all by the way I'm buying this and he he makes it very clear he says this is a treatise is not an investment bank as the ... debate this fall caught a baseball cuts as of late but trading of Barry Bonds covered her eyes and I just for that tomorrow so ... although I wish I can just ... five ... hundred to the Dow's ensure that any tree like Facebook or neglected domestic arena ... when I got a figure I don't know but I mean it's he does have some good points though and it gets back to when a lot of people talks over the last week in the sense that ... this this I killed your was so high school years when people were really looking forward to it and ... it just it was the result was seen as a way for the retail investors to get back into stock when this was going to be a good development this is gonna play out well ... maybe this wouldn't increase conferences in general and in other nurses and docs and now you seem to be up ... and and and the reason why it's even more ... exasperated some people is that the reason why Facebook I pray so highly is because of the interest in the individual rest investor not the institutional investor who had their doubts about the bag has been placed on it ... the momentum in the stock price was because of the institutional Mr and they're the ones in Cebu we've gotten for ... exactly exactly and so ... I managed for NASA management guys like Mark Cuban and like everybody needs their city with the tech bubble within TEC Inigo Hua comments and see things haven't really changed it's still this is as good as the amazing how many doubts about our son all the skepticism is really starting to ramp up about this company has an investment here says ... you seen with ... Natalee is market leader scene of many Morales announced in a lot more skeptical about it we had a ... column on MarketWatch saying that the Facebook of the investment was that the thirty dollars to a debt ... so it's it's ... there's a lot about speaking out of the Dow's to live debate still the competency for coming on the month ... still the calm ... dish serving up on top played a mess for TV broadcasters owe more on that coming back coming up ... Dish Network is serving up a hot play the best of the TV broadcasters in here to talk about it is actually rather spend on how Lori ... Van Goodluck sell ... this as his era is ... is over the new ad skipping technology that Dish Network has come out about called Hopper ... that the TV broadcast if only because it threatens their primary ... revenue stream which is advertising sales ... there were developments regarding this overnight what happened ... was ... this mean less ... aam bots on CBS and NBC have seen the dance ... and they're saying is that the interesting thing is they can come back and sue for and the ad skipping feature caught on ... no one is simpler and ... that dishes infringing copyright by allowing customers to automatically record ... on the number of days in prime time programming ... so this this can actually relate said the Allied nations and the DVR that have come up recently ... write and ... in what one makes is curious is that here you have DH ... hmm ... really irritating to some of its primary ... customers which is forecast to be yes it's a very competitive market you can subscribe for pay TV between the cable or satellite guys it's understood ... but here is this ... doing something that yes indeed with more subscribers book on it because of upset in broadcast TV networks which is the root of the networks that people watch most often I fail I think the main dishes tire unit that has been in a notoriously and many famously litigious and has ... hired by in outbound rankled with the new province before and it seems like this and is into another lane open up a big battle over retransmission fees to flood the pay TV operators paint ... to decorate says adept at fourteen to meet ... you is is this whole ... debate about the as could be technology really just a red herring to get that so that I did to to negotiate better ... licensing fees and Nadine out that the shares to pay for the rights to broadcast these these forecasts that works and it may very well may be a ... thing in in in the statement that has put out about this on to their highest selling on the other end of the back passes eleven center was ... on the company started indicated that that that the rising costs for programming is that the Tanaka and ... they're wondering how to how to deal with it the amazing team also has outlasted became the show's main cable executives can against that ad hopping technology because they're saying while this can actually make the broadcast it's the it's a tale of her cutting into my revenue source Madden yet I'm I tried it and got nailed raise my subscription fees that you can skip ... right right so you ... do this is now in the courts ... it's going to be talked about between the two sides it might even go to trial ... but they're still lot to be right about the story that I bought a set amount really thank thank you ... switching gears Apple has news today ... and it's ... news that their CEO is taking a little less money here to talk about is Tiernan Ray can and I don't ... during our I ... so want to give us an update on what what's come out today regarding Apple ... still upside down all while state incentives for directors and crew to ... basically hold a tennis pro ... of the dividend payout ... to sixty five shares was a star ... on her ... this was the start of the fourth quarter this year ... we are told that known for their employees to ... recall restricted stock units and stock option grants from data on Tuesday that will best until ... years after ... the students as they say will hold is aspirants of the people who ... on ... our own communities of these graceful in the sky was that didn't yet know it he says that ... to the co CEO Apple ... has sold more than she will forgo ... on net gain in ... the works and Atlantic harassed on any descendants ... bought Citi million dollars ... and ... Apple CEO said the history of taking less money on we should ... obviously throwing the answers that ... Apple CEOs are well paid people overall ... but weren't in Steve Jobs ... note or a of ten mostly for years to one dollar as the salary and hear this seems to be another sort of magnanimous gesture when cooked white ... to give up some money ... yes it is right into things when they're trying to woo her employees onto ... the workers the competed for by seeing not only will you pass ... on the share price initiation last ... seen on the media hold it for you ... when you fast ... and that ... is saying you know he's he's ... trying his performance on to his compensation saying it's such a person change but it has ... on thousands of us ... she has over million ... are restricted stock units and sending ... resume gate saying I'm not going to ... expect a collapse unless the share price ... and actually did everything this will wind up an apple ... but it is easy to read receipt dancing with my studying time last year Steve Jobs in your estimated five dollars hour on the old year consensus is keeping me ... on this idea that even with this useful site ... for this company for its stock ... I had heard ... of the suggestions that he take the money any way in which air which ... this can lead to the contest ... the pictures there ... and this isn't necessarily the myth that when when Apple announced a dividend ... they also said that companies may give up these restricted stock units ... they came out today because of the filing that Apple has tended to compensation compensation ... committee had signed off on it ... the bigger news here is telling people are born hire new governments on technology types ... and get out of the people that ... you have this kind of extraordinary that Apple can get ... home ... in addition to see in share prices are Gashi it's perhaps an insurance company contend ... that a start-up can do which is going to be a no previous years ... unfortunately that didn't stop coming on ... at the weekend ... coming up making it easier to search on Facebook and Twitter ... thanks to a kid ... the category of computer science ... the Ontario Canada ... Nick ... Benson and Steve ... the ... that are frantically she for seventeen year old who won the NTL ... of foundation young scientists awarding he is here to talk about it with us ... Nicholas are you know it ... you know things are you alright so slanderous was in the year that we saw and what is it that she did ... some of the listing was a part of the word ceremony ... somewhere in one mind on scientists to work ... I wanted for my research in areas of science called information TV channels with search engines ... like focused on search for things like Twitter tweets and Facebook status updates really short documents ... actually are because he'll share documents ... you know a lot of words in there for ... a lot of keywords that you can search for ... and so that the crux of my text and to keep it a try to identify statistical relationships between words and use those to get better search results for insight it's ... and what what sort of the Holy Grail mom what what was that what what what is that they discovered ... that helps you crack the code in and making the search easier ... for when Facebook and Twitter ... so he is the ... yet the key piece of that to one point it'll be over what develops ... aam was ... bustling gloom are often on a number of chain is basically this random process ... where you for masterpiece from one state to another state dependent only on where you are now offering will ... pass ... on any eighteen ... basic idea of what it really juicy trying streets ... of a network of all these different identity my my how potential relationships that works ... and then sold those relationships to try and find relationships ... how does a seventeen year old know about Markel chain ... I tell us all study ... aam I've done some study math is like a contests and certainly in school ... but mostly was just a lot of reading company contrast once I decided I wanted to try to translate ninety I how to use relationships for to search ... on ... the training ... how long have you been interested in computer coding and and eyes searching and doing things like that ... aam troubles laws like remember ... Allah always had an interest in computers and then when I first use who won six or seven years old I Phones magical peak just finished Harry Potter books ... I guess that the state with the site had a longstanding interest in search ... it certainly will because it's probably the most visible part of artificial intelligence marking the nights ... it is looking to cheer is doing to try and teach you were ... simple ... possibly for the phrase clear in trying to enshrine understand what it is and are searching for is a form of artificial objects ... where will ... we go from here what the next step ... um latex that ... is not entirely clear ... on from zero to fight to continue the project I'm probably going to work on implementing it making it faster ... Umeda Studio educates ... and to make it more practical well we had to wish you luck on that now decided to cut it short but congratulations that was good luck in the future ... and I am going to be seeing more of you in the in the future ... I thought it was ... alright that's it for Digits sake of Apple mean streets ... of ... the global headwinds drag us back into recession ... and a social media just that that somebody shoot up some leaves to join them at two o'clock ... piece of the Memorial day weekend see you next week